Solonex Management Inc. is a company working on the development, manufacture and sales of renewable and waste energy technologies. One product Solonex is working on is the Steam Injection System which is intended for use in the oil sands and shale/heavy oil industries. The company’s Steam Injection System is designed for use in oil fields where high-pressure steam can be injected into the oil formation to help dilute and separate the heavy oil from the earth.
Solonex’s Steam Injection System requires a lot capital to manufacture, so the company will not initially maintain an inventory of the product. As is customary with companies that develop and manufacture large construction and/or mining equipment, each unit will be made to order.
When a customer orders the Steam Injection System, Solonex will send field specialists to the firm to speak to the customer’s engineers, survey the site, and gather other relevant data. The specialists will then relay all of that information to Solonex so that the Steam Injection System will be manufactured to the customer’s specifications in order to meet their unique needs.
Next year, Solonex plans to contract with third parties to manufacture and assemble their Steam Injection Systems according to the company’s technical specifications. Solonex is pursuing bids from various manufacturing companies around the globe.
Solonex has made initial arrangements with TS2000-Star Vehicle Technologies Inc. This company has production facilities under construction in Malakwa, British Columbia, Canada. The facilities are a joint venture with Heromin, the North American arm of Yituo China Manufacturing Group, which is a large Chinese manufacturer with over 52,000 employees.
The TS2000/Heromin joint venture has indicated that it may open a US facility in the Free Trade Zone at the port of Bellingham, once the Canadian operation is running smoothly in about 18 months. Solonex is expecting to have assembly of Steam Injection Systems in Bellingham with heavy steel components manufactured in China, and other components such as electronics, controls and computer systems manufactured in the US.
This strategy on manufacturing and assembling the Steam Injection System should prove to have cost advantages for the company and filter through to the bottom line for Solonex.
Let us hear your thoughts: Solanex Management Inc. Message Board